Constellation Brands beats by $0.24, reports revs in-line; raises FY17 EPS above consensus :
- Reports Q3 (Nov) earnings of $1.96 per share, $0.24 better than the Capital IQ Consensus of $1.72; revenues rose 10.4% year/year to $1.81 bln vs the $1.81 bln Capital IQ Consensus. This reflects organic net sales growth on a constant currency basis of 7% and acquisition benefits.
- Net sales for beer increased 16 percent. This was due to a 12 percent increase in organic net sales driven primarily by volume growth and favorable pricing, and the acquisition benefit from Ballast Point.
- Wine and spirits net sales increased five percent. This primarily reflects the acquisition benefit from The Prisoner wine brands and favorable mix, partially offset by lower volume due to timing, as U.S. depletion volume outpaced shipment volume during the quarter.
- Co issues upside guidance for FY17, raises EPS to $6.55-6.65 from $6.30-6.45, excluding non-recurring items, vs. $6.46 Capital IQ Consensus Estimate.
- For fiscal 2017, the beer business continues to expect net sales growth of 16 - 17 percent and operating income growth at the high teens level. These growth rates include an estimated incremental benefit from the Ballast Point acquisition.
- For the wine and spirits business, the company continues to expect net sales growth in the mid single-digit range and operating income growth in the mid to high single-digit range. These growth rates include an estimated incremental benefit from the Meiomi, Prisoner, High West and Charles Smith acquisitions, net of the Canadian wine business divestiture.
- During Q3, the co repurchased 2.4 million shares of common stock for $367 million.
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